Interesting read for EDIG shareholder-Handal opposition response (Patent108)-(2)
posted on
Jul 24, 2015 07:09PM
II. LEGAL STANDARD
The Federal Circuit recognizes the existence of a “strong public policy
favoring expeditious resolutions of litigation.” Kahn v. Gen. Motors Corp., 889
F.2d 1078, 1080 (Fed. Cir. 1989). Nevertheless, “District courts have inherent
authority to stay proceedings before them.” Rohan ex rel. Gates v. Woodford, 334
F.3d 803, 817 (9th Cir. 2003). “[T]he power to stay proceedings is incidental to the
power inherent in every court to control the disposition of the causes on its docket
with economy of time and effort for itself, for counsel, and for litigants.” Landis v.
N. Am. Co., 299 U.S. 248, 254 (1936). However, a “court is under no obligation to delay its own proceedings” where parallel litigation is pending before the Patent Trial and Appeal Board (“PTAB”). See, Robert Bosch Healthcare Systems, Inc. v.
Cardiocom, LLC, 2014 U.S. Dist. LEXIS 92792, 2014 WL 3107447 at *2 (N.D.
Cal. Jul. 3, 2014).
“There is no per se rule that patent cases should be stayed pending reexamination, because such a rule ‘would invite parties to unilaterally derail’
litigation.” Verinata Health, Inc. v. Ariosa Diagnostics, Inc., 2014 U.S. Dist.
LEXIS 4025, at *4 (N.D. Cal. Jan. 13, 2014) (quoting ESCO Corp. v. Berkeley
Forge & Tool, Inc., 2009 U.S. Dist. LEXIS 94017, at *5 (N.D. Cal. Sept. 28,
2009)). Instead, the decision to grant a stay is within the court’s discretion, taking
into account the totality of the circumstances. See, Ethicon v. Quigg, 849 F.2d
1422, 1426-27. A “court is under no obligation to delay its own proceedings by
yielding to ongoing PTO reexaminations, regardless of their relevancy to
infringement claims which the court must analyze.” Verinata Health at *5 (quoting
ESCO Corp. v. Berkeley Forge & Tool, Inc., 2009 U.S. Dist. LEXIS 94017, at *5).
This is especially true when the Patent Office has yet to decide whether to
institute IPR proceedings. See, e.g., VirtualAgility Inc. v. Salesforce.com, Inc., 759
F.3d 1307, 1315-16 (Fed. Cir. 2014); Loyalty Conversion Sys. Corp. v. American
Airlines, Inc., 2014 U.S. Dist. LEXIS 102978, 2014 WL 3736514 at *1-2 (E.D.
Tex. Jul. 29, 2014) (noting that the “majority of courts . . . have denied stay
requests when the PTAB has not yet acted on the petition for review”).
The Court ultimately must decide whether to issue a stay on a case-by-case
basis. See, e.g., Asetek Holdings, Inc. v. Cooler Master Co., Ltd., 2014 U.S. Dist.
LEXIS 47134, 2014 WL 1350813, at *1 (N.D.Cal. Apr. 3, 2014). In determining
whether to stay an action, a court must weigh competing interests that will be
affected by the granting or denial of a stay. CMAX, Inc. v. Hall, 300 F.2d 265, 268
(9th Cir. 1962).
In determining whether to stay a case pending inter partes review, the Court
considers three factors: (1) whether discovery is complete and whether a trial date
has been set; (2) whether a stay will simplify the issues in question and trial of the
case; and (3) whether a stay would prejudice the non-moving party or present a
clear tactical advantage for the moving party. See, Netlist, Inc. v. Smart Storage
Systems, 2014 U.S. Dist. LEXIS 116979, at *4 (N.D. Cal. Aug. 21, 2014); Tas
Energy, Inc. v. San Diego Gas & Elec. Co., 2014 U.S. Dist. LEXIS 26107, at *8-9
(S.D. Cal. Feb. 26, 2014); The Leahy-Smith America Invents Act, § 18(b)(1), P.L.
112-29, 125 Stat. 284, 331 (setting out the same factors and adding a fourth to
determine whether to stay litigation pending PTO review of covered business
method patents).
“The proponent of a stay bears the burden of establishing its need.” Clinton
v. Jones, 520 U.S. 681, 708 (1997) (citing Landis, 299 U.S. at 255.) “If there is
even a fair possibility that the stay for which [the movant] prays for will work
damage to someone else,” the movant “must make out a clear case of hardship or
inequity in being required to go forward.” CMAX, 300 F.2d at 268 (quoting Landis,